Hooker 2Q sales up 14.2%; profits more than double
By Furniture Today Staff -- Furniture Today, July 19, 2004
Martinsville, Va. — Case goods and upholstery manufacturer and importer Hooker Furniture reported sales in its second quarter rose 14.2% to $91.5 million, compared with $80.1 million a year ago.
Net income in the quarter ended May 31 more than doubled to $5.5 million from $2.6 million in last year's comparable quarter.
This was Hooker's 10th consecutive quarter of increased sales. Leather upholstery specialist Bradington-Young's sales are included from its Jan. 2, 2003 acquisition. Hooker ranks No. 14 on Furniture/Today's latest listing of the top furniture sources for the U.S. market.
Chairman and CEO Paul Toms said, "Improvement in the availability of imported wood furniture and our expanded sales distribution network for Bradington-Young upholstered furniture fueled our record sales performance during the 2004 second quarter."
During the quarter, shipments of imported wood furniture grew by 26.2% to $48.5 million compared with $38.4 million in the year-ago quarter. Shipments of domestically produced wood furniture in the quarter were off 6% to $27.7 million. Leather shipments by Bradington-Young accounted for $15.3 million in net sales, an increase of $3.1 million.
For the first six months, Hooker's total sales were up 9.8% to $169.7 million from $154.6 million for the same period in 2003. Imported wood shipments were up 19% to $87.1 million, and domestically produced wood furniture declined 9% to $55.1 million. Bradington-Young accounted for $27.5 million in net sales in the six months compared with $20.9 million a year ago, which included only five months of Bradington-Young sales.
Net income for the six months jumped 25.9% to $9.6 million from $7.6 million last year.
Based on a preliminary review, Hooker said it does not believe the recently announced duties on imported Chinese wood bedroom furniture will have a material affect on its sales or profitability.
Toms said the third-quarter outlook is "fairly bullish," with the company forecasting an 8% to 12% sales increase.
| Hooker Furniture(a) | |||
|---|---|---|---|
| Owns Bradington-Young | |||
| Earnings per share are fully diluted. | |||
| Quarter ended 5/31 | 2004 | 2003 | Change |
| (a) Includes the results from Bradington-Young from its Jan. 2, 2003 acquisition. (b) Includes a $911,000 after-tax charge for severance and related asset impairment in connection with the August 2003 closing of the Kernersville, N.C., facility. (c) Based on average shares outstanding of 11.8 million in the 2004 quarter, 11.5 million in the 2003 quarter, 11.6 million in the 2004 six months and 11.4 million in the 2003 six months. | |||
| Sales | $91,490,000 | $80,115,000 | 14.2% |
| Operating income | 9,325,000 | 6,241,000 | 49.4% |
| Net income | 5,514,000 | (b)2,595,000 | 112.5% |
| Earnings per share (c) | 0.47 | 0.23 | 104.3% |
| 6 months ended 5/31 | 2004 | 2003 | Change |
| Sales | $169,712,000 | $154,590,000 | 9.8% |
| Operating income | 16,165,000 | 14,742,000 | 9.7% |
| Net income | 9,554,000 | (b)7,586,000 | 25.9% |
| Earnings per share (c) | 0.82 | 0.66 | 24.2% |
